Embed Size (px)
Citation preview
AN OVERVIEW OF CONSERVATION AGREEEMENTS
Brad Wyche
September 19, 2007
LAND CONVERSION IN UNITED STATES
–6,000 acres per day
–4 acres per minute
LAND CONVERSION IN SOUTHEAST
–Highest in United States
–1,200 acres per day
Upstate Development Rate• Land consumption can be projected on the basis
of previous land development patterns and future population– 2 scenarios presented:
• Assume average densities consistent with pattern of development from 1940 to 1990: Land consumption at less than one-half the rate of population growth.
• Assume land consumption rates consistent with pattern of development from 1990 to 2000: Land consumption at up to 6 times the rate of population growth.
Clemson University, Center for Community Growth and Change, Growth Impact Study for Upstate South Carolina (2005)
Total Urbanized Area Under Two Scenarios
2025 2050
1 (1940-1990 rate) 383,309 490,385
2 (1990-2000 rate) 793,915 1,705,595
490,385383,309
1,705,595
793,915
224,031
0
500,000
1,000,000
1,500,000
2,000,000
1992 2025 2050
Year
Urb
aniz
ed A
crea
ge
Based on Historical Development Pattern
Based on Recent Land Consumption Patterns
WHAT IS GOING TO HAPPEN TO RIVERVIEW??
““IF YOU ARE A LANDOWNER IN IF YOU ARE A LANDOWNER IN THIS COUNTRY, AND IF YOU CARE THIS COUNTRY, AND IF YOU CARE ABOUT YOUR LAND, YOU CANNOT ABOUT YOUR LAND, YOU CANNOT DO NOTHING.”DO NOTHING.”
Stephen J. Small, Stephen J. Small, Preserving Family Lands, Book IIIPreserving Family Lands, Book III, p. 27., p. 27.
THE USUAL OPTIONSTHE USUAL OPTIONS
• SELL ITSELL IT
• GIVE IT GIVE IT AWAYAWAY
• HANG ONHANG ON
““NEVER TRUST AN NEVER TRUST AN UNRESTRICTED PIECE OF UNRESTRICTED PIECE OF LAND.” LAND.”
Stephen J. Small, Stephen J. Small, Preserving Family Lands, Book IPreserving Family Lands, Book I, p. 84., p. 84.
ANOTHER OPTION:THE CONSERVATION
AGREEMENT A VOLUNTARY A VOLUNTARY
AGREEMENT BETWEEN AGREEMENT BETWEEN A LANDOWNER AND A A LANDOWNER AND A LAND TRUST (OR LAND TRUST (OR GOVERNMENT GOVERNMENT AGENCY) THAT AGENCY) THAT PERMANENTLY PERMANENTLY RESTRICTS USES AND RESTRICTS USES AND ACTIVITIES ON THE ACTIVITIES ON THE PROPERTY IN ORDER PROPERTY IN ORDER TO PROTECT ITS TO PROTECT ITS CONSERVATION CONSERVATION VALUES.VALUES.
RETAINED RIGHTSRETAINED RIGHTS RELINQUISHED RELINQUISHED RIGHTSRIGHTS
COMMERCIAL
INDUSTRIAL
RESIDENTIAL
AGRICULTURAL
MINING
WETLANDS ALTERATION
STREAMS AND LAKES ALTERATION
TIMBER HARVESTING
FOR HAZARD & DISEASE ONLY
UNDER FOREST MANAGEMENT PLAN
WASTE DISPOSAL
SIGNS AND BILLBOARDS
FISHING AND HUNTING
RETAINED RIGHTSRETAINED RIGHTS RELINQUISHED RIGHTSRELINQUISHED RIGHTS
COMMERCIAL
INDUSTRIAL
SOME RESIDENTIAL
AGRICULTURALMINING
WETLANDS ALTERATION
STREAMS AND LAKES ALTERATION
TIMBER HARVESTING
UNDER FOREST MANAGEMENT PLAN
WASTE DISPOSAL
SIGNS AND BILLBOARDS
FISHING AND HUNTINGFISHING AND HUNTING
SOME OTHER POINTSSOME OTHER POINTS
• PROPERTY CONTINUES PROPERTY CONTINUES TO BE PRIVATELY TO BE PRIVATELY OWNEDOWNED
• EASEMENT CAN BE EASEMENT CAN BE PURCHASED OR PURCHASED OR DONATEDDONATED
• EASEMENT CAN APPLY EASEMENT CAN APPLY TO PART OR ALL OF TO PART OR ALL OF THE PROPERTYTHE PROPERTY
• THE EASEMENT IS THE EASEMENT IS TYPICALLY TYPICALLY PERMANENTPERMANENT
““IN FACT, IT IS USUALLY CORRECT TO SAY IN FACT, IT IS USUALLY CORRECT TO SAY THAT A LANDOWNER WHO CARES ENOUGH THAT A LANDOWNER WHO CARES ENOUGH ABOUT HIS OR HER PROPERTY TO PUT A ABOUT HIS OR HER PROPERTY TO PUT A CONSERVATION EASEMENT ON IT WILL BE CONSERVATION EASEMENT ON IT WILL BE DOING EXACTLY THE SAME THING ON THE DOING EXACTLY THE SAME THING ON THE LAND AFTER THE EASEMENT IS RECORDED AS LAND AFTER THE EASEMENT IS RECORDED AS HE OR SHE WAS DOING BEFORE THE HE OR SHE WAS DOING BEFORE THE EASEMENT WAS RECORDED.”EASEMENT WAS RECORDED.”
Stephen J. Small, Stephen J. Small, Preserving Family Lands, Book IIPreserving Family Lands, Book II, , pp. 24-25.pp. 24-25.
LAND TRUST’SLAND TRUST’SRESPONSIBILITIESRESPONSIBILITIES
• BASELINE BASELINE REPORTREPORT
• MONITORINGMONITORING
• ENFORCEMENTENFORCEMENT
INCOME TAX INCOME TAX BENEFITBENEFIT
DIFFERENCE BETWEEN DIFFERENCE BETWEEN “PRE-EASEMENT” VALUE “PRE-EASEMENT” VALUE AND “POST-EASEMENT” AND “POST-EASEMENT”
VALUE IS THE POTENTIAL VALUE IS THE POTENTIAL DEDUCTIONDEDUCTION
DEDUCTION LIMITSDEDUCTION LIMITS
OLD LAW:OLD LAW:CANNOT EXCEED 30% OF ADJUSTED GROSS INCOME WITH 5 YEAR CARRY FORWARD CANNOT EXCEED 30% OF ADJUSTED GROSS INCOME WITH 5 YEAR CARRY FORWARD
NEW LAW:NEW LAW:50% OF ADJUSTED GROSS INCOME WITH 15 YEAR CARRY FORWARD. FOR FARMERS AND 50% OF ADJUSTED GROSS INCOME WITH 15 YEAR CARRY FORWARD. FOR FARMERS AND RANCHERS, 100% OF ADJUSTED GROSS INCOME!RANCHERS, 100% OF ADJUSTED GROSS INCOME!
BUT:BUT:NEW LAW APPLIES ONLY TO EASEMENTS SIGNED IN 2006 AND 2007. LAW WILL EXPIRE AT NEW LAW APPLIES ONLY TO EASEMENTS SIGNED IN 2006 AND 2007. LAW WILL EXPIRE AT END OF THIS YEAR AND OLD DEDUCTION LIMITS WILL GO BACK INTO EFFECT. BUT END OF THIS YEAR AND OLD DEDUCTION LIMITS WILL GO BACK INTO EFFECT. BUT LEGISLATION IS PENDING TO MAKE THE NEW LAW PERMANENT—CALL YOUR LEGISLATION IS PENDING TO MAKE THE NEW LAW PERMANENT—CALL YOUR REPRESENTATIVES!REPRESENTATIVES!
NEW INCENTIVES NEW INCENTIVES ESPECIALLY HELPFUL FOR ESPECIALLY HELPFUL FOR
MODEST INCOME MODEST INCOME LANDOWNERSLANDOWNERS::
Assume landowner has AGI of $50,000 and donates easement Assume landowner has AGI of $50,000 and donates easement worth $400,000worth $400,000
Old Law: Total deduction over six years=$90,000Old Law: Total deduction over six years=$90,000 $310,000 of the deduction wasted$310,000 of the deduction wasted
New Law: Total deduction over 15 years=$400,000New Law: Total deduction over 15 years=$400,000 Entire deduction usedEntire deduction used
CONSERVATION PURPOSES TESTCONSERVATION PURPOSES TEST
1.1. The preservation of land for outdoor recreation by, or the education of, the publicThe preservation of land for outdoor recreation by, or the education of, the public2.2. The protection of relatively natural habitat for fish, wildlife, or plants or similar The protection of relatively natural habitat for fish, wildlife, or plants or similar
ecosystemsecosystems3.3. The preservation of open space (including farmland and forest land) where such The preservation of open space (including farmland and forest land) where such
preservation will yield a significant public benefit and is either (a) for the scenic preservation will yield a significant public benefit and is either (a) for the scenic enjoyment of the general public or (b) pursuant to a clearly delineated federal, state enjoyment of the general public or (b) pursuant to a clearly delineated federal, state or local government conservation policyor local government conservation policy
4.4. The preservation of a historically significant land area or certified historic structure.The preservation of a historically significant land area or certified historic structure.
““IF YOU ARE TRULY CONTRIBUTING IF YOU ARE TRULY CONTRIBUTING SOMETHING TO THE GENERAL SOMETHING TO THE GENERAL ENVIRONMENTAL WELL-BEING OF THE AREA, ENVIRONMENTAL WELL-BEING OF THE AREA, THEN THAT’S A GOOD (AND DEDUCTIBLE) THEN THAT’S A GOOD (AND DEDUCTIBLE) GIFT. IF YOU ARE TRULY TRYING TO GET GIFT. IF YOU ARE TRULY TRYING TO GET AWAY WITH SOMETHING (“MAYBE I CAN GET AWAY WITH SOMETHING (“MAYBE I CAN GET A DEDUCTION FOR NOT ALLOWING ANY A DEDUCTION FOR NOT ALLOWING ANY MORE DEVELOPMENT ON MY SUBURBAN MORE DEVELOPMENT ON MY SUBURBAN LOT”), AND THERE IS NOTHING LOT”), AND THERE IS NOTHING PARTICULARLY UNUSUAL ABOUT THE PARTICULARLY UNUSUAL ABOUT THE PROPERTY OR ITS SETTING, YOU ARE PROPERTY OR ITS SETTING, YOU ARE PROBABLY NOT ENTITLED TO AN INCOME PROBABLY NOT ENTITLED TO AN INCOME TAX DEDUCTION.”TAX DEDUCTION.”
Stephen J. Small, Stephen J. Small, Preserving Family Lands, Book IPreserving Family Lands, Book I, pp. 19-20., pp. 19-20.
ESTATE TAX ESTATE TAX BENEFITBENEFIT
Property Is Valued In Owner’s Property Is Valued In Owner’s Estate At Its Reduced Value, Estate At Its Reduced Value, And An Additional 40% Of And An Additional 40% Of
This Value Can Be Excluded This Value Can Be Excluded From The EstateFrom The Estate
““EVERY LANDOWNER IS UNIQUE AND EVERY LANDOWNER IS UNIQUE AND EVERY PIECE OF LAND IS UNIQUE. EVERY EVERY PIECE OF LAND IS UNIQUE. EVERY CONSERVATION EASEMENT SHOULD BE CONSERVATION EASEMENT SHOULD BE UNIQUE AND MUST BE TAILORED TO MEET UNIQUE AND MUST BE TAILORED TO MEET THE NEEDS OF THAT PARTICUAR THE NEEDS OF THAT PARTICUAR LANDOWNER AND THAT PARTICULAR LANDOWNER AND THAT PARTICULAR PIECE OF LAND.”PIECE OF LAND.”
Stephen J. Small, Stephen J. Small, Preserving Family Lands, Book Preserving Family Lands, Book II, pp. 18., pp. 18.
THE THE CONSERVATION CONSERVATION AGREEMENT: AGREEMENT:
A WIN-WIN FOR LANDOWNERS A WIN-WIN FOR LANDOWNERS AND THE LAND! AND THE LAND!
